Running a Restaurant/buying a pizzeria

QuestionQUESTION: What should be the percentages of owning a pizzeria.Food cost,labor,rent utilities fixed expenses and of course my profit percentage. Thank you.

ANSWER: Vincenzo,
I am basing my answer on a basic pizzeria with take-out and small dine in service. It is important to know what your prime costs are this is your labor and food costs. Food costs in a pizzeria should run between 28-30%. If you are a owner operator you may be able to get that down a little bit but it is very difficult in these times. Labor costs depends on a few factors, what type of restaurant, delivery, owner operator. If you can run your labor costs at 28-30% that would also be within an appropriate range. This would be your prime cost if you add the two percentages together. You would want to keep those two items below 60%. Rent should run 8% on the high side 6-7% is preferable. Make sure when you are looking at labor costs you look at true cost to include taxes. Menu pricing, labor and food costs are very important and you should be checking these items regularly. Let me know if I can help in any other way... Rob

---------- FOLLOW-UP ----------

QUESTION: How much of a pizzeria should be delivery?

ANSWER: VInvenzo, Give me a little more information. Tell me a little bit about the type of restaurant you are looking to open. How many square feet is the restaurant? How many tables will you have? Are you offering table service? Have you thought about how you are going to pay your drivers? Are you charging for deliveries? How many miles from your restaurant will you deliver? What structure are you putting in place to ensure your product is delivered on time and of good quality? Do you have a pos system that has a delivery module? thanks Rob

---------- FOLLOW-UP ----------

QUESTION: it's a exsisting restaurant 5000 sq ft. Holds about 80 people.On main highway in a strip mall.Offers table service.Tere are 6 hotels all around us u can walk to.Don't know about pos system.One problem is their reviews on tripadviser and urbanspoon are horrible.And the guy wants $200,000 for the business which supposedly grosses $650,000. What am I paying for ?A restaurant with a bad rep and the contents, you don't own the building.What do you think?

AnswerVincenzo, there are so many more questions to ask before I can answer you appropriately. How much is the rent? How many years left on the lease? are there any lease options left? What is being offered as far as equipment? What shape is the equipment in? What other stores are in your plaza? 5000 square feet is a lot with only 80 seats what is the remaining space being used for? do you need to do renovations?

Expertise

I am well versed in most areas of the restaurant industry. I have had 30 years of experience in
Setting up, designing, menu planning, food and labor costing and the full build out of 6 restaurants. I also have a lot of knowledge in the laws of NY state.In addition I have extensive knowledge in the golf industry from food and beverage to the operations of a private club.

Experience

I have owned built and operated 6 restaurants from fine dining to pizzeria's. My experience spans over 30 years in this industry. My areas of expertise are:
Food and beverage, Purchasing, food costing, menu planning as well as the daily needs of a restaurant. I have extensive knowledge in the full build out of a new restaurant from the ground up. I have also owned and operated the food and beverage operations in a private country club. My knowledge in the golf industry is fairly extensive and can answer most questions in this area as well.

OrganizationsBoard of directors at private country club
Fish and game club member
Austerlitz Historical Society
Nys magistrates association